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5 Metrics Every SaaS Business Should Track

To scale effectively, monitor these:

  1. Customer Acquisition Cost (CAC) – The average cost of acquiring a new customer, including marketing, sales, and onboarding expenses. Lower CAC means more efficient growth.

  2. Customer Lifetime Value (CLV) – The total revenue a business can expect from a customer throughout their relationship. A higher CLV compared to CAC indicates strong profitability.

  3. Monthly Recurring Revenue (MRR) – Predictable monthly income from subscriptions or contracts. It’s a key metric for measuring SaaS growth and stability.

  4. Churn Rate – The percentage of customers or revenue lost over a period. A high churn rate signals customer dissatisfaction or poor retention.

  5. Net Promoter Score (NPS) – A measure of customer loyalty based on their likelihood to recommend your product. Higher NPS reflects better satisfaction and stronger word-of-mouth growth.

Which KPI do you track most closely?

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